Econ Unit 2 Review

Which option accurately identifies two characteristics of a command economy?

• centrally-planned, driven by profit motive

• central ownership of property, lack of consumer choice

• competition between sellers, central ownership of resources

• centrally-planned,high degree of consumer sovereignty

Which type of economy has private property, consumer sovereignty, individual choice, profit, and no government involvement?

• traditional economy
• command economy
• free market economy
• mixed economy

Which of the following is most commonly a role of the government in the United States economy?

• setting prices for goods

• requiring factories to produce certain goods

• determining where citizens may work

• creating laws to ensure the safety of consumers

The Inuit in northern Alaska and Canada are examples of this type of economy

• traditional

• command

• mixed

• market

The former USSR, North Korea, and Cuba are close examples of

• traditional economies

• market economies

• command economies

• mixed economies

What are the three basic questions all economies must answer?

• What to produce, how to produce, for whom to produce

• Why to produce, where to produce and for whom

• What to produce, how to produce, where to produce

There are four types of economic systems. All economies are _____.

• Traditional

• Command

• Market

• Mixed

The four types of economic systems are: 

• Traditional, Command, Mixed, & Market
• Traditional, Command, Combined, & Market
• Communism, Capitalism, Free Market, and Macroeconomics
• Microeconomics, Macroeconomics, Individual, and Traditional.

When buyers have power over the market and what is produced, it is called

• market economies

• competition

• consumer sovereignty

• profit motive

What is one benefit of competition? 

• higher prices
• better quality
• less demand
• less variety